Gold Resumes Slide, down 1.6%

By Sam Mamudi

Bloomberg News

Falling again

Gold is again losing its luster. After ending last week (and month) down, gold futures bounced back slightly yesterday to close up about 0.5%. But the slide is back on today, with gold down more than 1.6% today. Gold futures for December delivery are now below $1,700, at $1,691.60 an ounce.

The dip in the price of gold was not accompanied by weaker ETF demand; on the contrary, gold ETFs tracked by Bloomberg recorded inflows yesterday for the twelfth consecutive day of trading, so the lower prices are clearly being regarded as an attractive opportunity to buy .

It’ll take a lot more than falling gold prices to deter gold bugs.

What’s interesting this morning is that gold prices are falling even as the dollar slips — the U.S. Dollar index is down about 0.3% right now. The metal and the currency typically move inversely to one another.

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